Chap. 96.—An ACT to require a Deposit of Recurities to be made by
Foreign Insurance Companies doing Business ‘a this State.

Passed February 3, 1866.

1. Be it enacted by the general assembly, That no insu-
runce company, Which has not been incorporated under the
laws of the state of Virginia, shall carry on its business in
this state, without obtaining a license to transact its business,
in the manner prescribed by Jaw: and no such company shall
receive such license until it has deposited with the treasurer
of the state six per centum bonds of the state of Virginia,
or other bonds of public corporations guaranteed by the
state, or bonds of individuals, residents of the state, executed
for money loaned or debts contracted after the passage of
this act. and secured by deed of trust on real estate in this
state, bearing not less than six per centum per annum inter-
est, to the amount following, to wit: If the capital of the
said company does not exceed tive hundred thousand dollars,
it shah deposit thirty thousand dollars of said bonds. It the
enpital of the company is over five hundred thousand dollars,
and does not exceed one million of dollars, it shall deposit
thirty-five thousand dollars: and for every additional million
of dollars, or a traction thereof, it shall deposit an additional
tive thousand dollars of said bonds; but no company shall
be required to deposit more than fifty thousand dollars of
said bonds.

2. Any such coinpany, desiring to carry on the bnsiness of
insurance, shall, by an agent employed to supermtend or
manage its business in thix state, deliv er, under oath, to the
treasurer, a statement of the amount of the capital of said
company, and make with him the deposit of bonds, as pre-
scribed in the preceding section; or, without the oath, may
deposit fifty thousand dollars of said bonds; but the bonds
so deposited shall not be im sums exceeding five thousand
doliars; and the treasurer shall thereupon give to said agent
a receipt for the same; and upow the exhibition of the said
receipt to a commissioner of the revenue of the county or
corporation in which an office of the said company in this
stute Is, or is intended to be loeated, and having paid the
specific license tax which may be imposed thereon, a license
shall be issued, in the manner provided by law, to said com-
pany to earry on its business: and if, at the end of the period
jor which a license is given, the said company shall desire
another license, 1t shall only he viven on the certificate of the
treasurer that the bonds, requir ed by this act to be deposited
with him, are in his possession.

3. Ifthe bonds deposited with the treasurer are recistered
or Individual bonds, the company shall, at the same time,
deliver to him a power of attorney authorizing him to trans-
fer the said bonds, or any part of them, for the purpose of
paying any of the liabilities provided for m this act.

+. The treasurer, at the time of receiving said bonds, shall
sive to the said company authority to draw the interest
thereof, as the same may become due and payable, for. the
use of said company; which authority shall continue in force
until the said company shall fail to pay any of its liabilities
upon its insurance policies made in favor of any citizen or
inhabitant of this state: in which ease, the party chareed
with the payment of such interest, shall be forthwith notified
of such failure; and thereafter such interest shall be payable
to the said treasurer, to be applied, if necessary, to the pay-
ment ot such liabilities.

0. If the said company shall fail to pay any of its abilities

on said policies of insurance, according to the terms of’ said
policies, when the same shall have been “adjusted between the
parties in the mode provided in the policies, if a mode is
specified therein, or when the same shall have been ascertained
in any mode agreed upon by the parties, or by the judgment,
order or decree of a court having jurisdiction thereof, the
treasurer shall, upon the application of the party to w ‘hom
the debt or money is due, proceed to sell at auction such an
amount of said bonds as, with the interest in his hands, will
pay the amount due and the expenses of sale, and out of the
proceeds of such sale shall pay the amount so due, and the
said expenses of sale: provided, that the party making the
application to the treasurer shall give to the company, or an
agent of the company in this state, ten days’ notice of his
intention to make said application.

6. Any foreign insurance company, doing business as such
in this state, may be sued in the courts of this state, upon
policies of insurance made to eltizens or résidents therein, in
like manner as it such foreign insurance company had been
incorporated by this general assembly; and service of pro-
cess or notice upon the agent of such company, shall be
service upon the company.

7. When the principal of any of said bonds so deposited
shall be paid to the treasurer, he shall notify the company, or
its avent in this state, and may pay the money so received to
the said company, Upon receiving other like bonds to an
equal amount; or upon the tailure ‘of the company, for thirty
days after receiving said notice, to deliver other like bonds
to an equal amount, to the treasurer, he may invest the said
monéy in such bends, and hold the same as he held those
bonds which were paid off.

8. If such company shall cease to carry on business In this
state, and the liabilities of such company upon its insurance
policies, whether tixed or contingent, to the citizens and in-
habitants of the state, shall have been satisfied, or shall have
terminated—upon satisfactory evidence of this tact to the
treasurer, he shall deliver to such insurance company the bonds
deposited with him by said company, or such as he purchased
under the preceding section, or such of them as remain after
paying the liabilities of said company, provided tor in the
itth section of this act; or if such company shall reduce the
amount of its liabilities, both fixed and contingent, upon its
policies of Insurance to the citizens and inhabitants of this
state, below the amount of the bonds in the possession of
the treasurer, he may deliver to such company a part of the
bonds deposited by said company with him, but so that the
bonds in his possession shall always be equal to the labilities
of said company upon the insurance policies to citizens and
inhabitants of this state.

9. If the treasurer shall dispose of the bonds deposited
with him by any imsurance company, under the provisions of
this act, or any part of said bonds, otherwise than is pro-
vided in this act. he shall be enilty of a felony, and upon
conviction thereof, shall be punished by a tine double the
amount of the bonds so disposed of, and by continement m
the penitentiary tor a period not less than five nor more than
fitteen vears

10. This act shall be in furce from its passage.

Chap. 96.—An ACT to require a Deposit of Recurities to be made by
Foreign Insurance Companies doing Business ‘a this State.

Passed February 3, 1866.

1. Be it enacted by the general assembly, That no insu-
runce company, Which has not been incorporated under the
laws of the state of Virginia, shall carry on its business in
this state, without obtaining a license to transact its business,
in the manner prescribed by Jaw: and no such company shall
receive such license until it has deposited with the treasurer
of the state six per centum bonds of the state of Virginia,
or other bonds of public corporations guaranteed by the
state, or bonds of individuals, residents of the state, executed
for money loaned or debts contracted after the passage of
this act. and secured by deed of trust on real estate in this
state, bearing not less than six per centum per annum inter-
est, to the amount following, to wit: If the capital of the
said company does not exceed tive hundred thousand dollars,
it shah deposit thirty thousand dollars of said bonds. It the
enpital of the company is over five hundred thousand dollars,
and does not exceed one million of dollars, it shall deposit
thirty-five thousand dollars: and for every additional million
of dollars, or a traction thereof, it shall deposit an additional
tive thousand dollars of said bonds; but no company shall
be required to deposit more than fifty thousand dollars of
said bonds.

2. Any such coinpany, desiring to carry on the bnsiness of
insurance, shall, by an agent employed to supermtend or
manage its business in thix state, deliv er, under oath, to the
treasurer, a statement of the amount of the capital of said
company, and make with him the deposit of bonds, as pre-
scribed in the preceding section; or, without the oath, may
deposit fifty thousand dollars of said bonds; but the bonds
so deposited shall not be im sums exceeding five thousand
doliars; and the treasurer shall thereupon give to said agent
a receipt for the same; and upow the exhibition of the said
receipt to a commissioner of the revenue of the county or
corporation in which an office of the said company in this
stute Is, or is intended to be loeated, and having paid the
specific license tax which may be imposed thereon, a license
shall be issued, in the manner provided by law, to said com-
pany to earry on its business: and if, at the end of the period
jor which a license is given, the said company shall desire
another license, 1t shall only he viven on the certificate of the
treasurer that the bonds, requir ed by this act to be deposited
with him, are in his possession.

3. Ifthe bonds deposited with the treasurer are recistered
or Individual bonds, the company shall, at the same time,
deliver to him a power of attorney authorizing him to trans-
fer the said bonds, or any part of them, for the purpose of
paying any of the liabilities provided for m this act.

+. The treasurer, at the time of receiving said bonds, shall
sive to the said company authority to draw the interest
thereof, as the same may become due and payable, for. the
use of said company; which authority shall continue in force
until the said company shall fail to pay any of its liabilities
upon its insurance policies made in favor of any citizen or
inhabitant of this state: in which ease, the party chareed
with the payment of such interest, shall be forthwith notified
of such failure; and thereafter such interest shall be payable
to the said treasurer, to be applied, if necessary, to the pay-
ment ot such liabilities.

0. If the said company shall fail to pay any of its abilities

on said policies of insurance, according to the terms of’ said
policies, when the same shall have been “adjusted between the
parties in the mode provided in the policies, if a mode is
specified therein, or when the same shall have been ascertained
in any mode agreed upon by the parties, or by the judgment,
order or decree of a court having jurisdiction thereof, the
treasurer shall, upon the application of the party to w ‘hom
the debt or money is due, proceed to sell at auction such an
amount of said bonds as, with the interest in his hands, will
pay the amount due and the expenses of sale, and out of the
proceeds of such sale shall pay the amount so due, and the
said expenses of sale: provided, that the party making the
application to the treasurer shall give to the company, or an
agent of the company in this state, ten days’ notice of his
intention to make said application.

6. Any foreign insurance company, doing business as such
in this state, may be sued in the courts of this state, upon
policies of insurance made to eltizens or résidents therein, in
like manner as it such foreign insurance company had been
incorporated by this general assembly; and service of pro-
cess or notice upon the agent of such company, shall be
service upon the company.

7. When the principal of any of said bonds so deposited
shall be paid to the treasurer, he shall notify the company, or
its avent in this state, and may pay the money so received to
the said company, Upon receiving other like bonds to an
equal amount; or upon the tailure ‘of the company, for thirty
days after receiving said notice, to deliver other like bonds
to an equal amount, to the treasurer, he may invest the said
monéy in such bends, and hold the same as he held those
bonds which were paid off.

8. If such company shall cease to carry on business In this
state, and the liabilities of such company upon its insurance
policies, whether tixed or contingent, to the citizens and in-
habitants of the state, shall have been satisfied, or shall have
terminated—upon satisfactory evidence of this tact to the
treasurer, he shall deliver to such insurance company the bonds
deposited with him by said company, or such as he purchased
under the preceding section, or such of them as remain after
paying the liabilities of said company, provided tor in the
itth section of this act; or if such company shall reduce the
amount of its liabilities, both fixed and contingent, upon its
policies of Insurance to the citizens and inhabitants of this
state, below the amount of the bonds in the possession of
the treasurer, he may deliver to such company a part of the
bonds deposited by said company with him, but so that the
bonds in his possession shall always be equal to the labilities
of said company upon the insurance policies to citizens and
inhabitants of this state.

9. If the treasurer shall dispose of the bonds deposited
with him by any imsurance company, under the provisions of
this act, or any part of said bonds, otherwise than is pro-
vided in this act. he shall be enilty of a felony, and upon
conviction thereof, shall be punished by a tine double the
amount of the bonds so disposed of, and by continement m
the penitentiary tor a period not less than five nor more than
fitteen vears

10. This act shall be in furce from its passage.